A retailer’s physical count of inventory was higher than that shown by the perpetual records. Which of the following could explain the difference?
a. Inventory items had been counted but the tags placed on the items had not been taken off and added to the inventory accumulation sheets.
b. Credit memos for several items returned by customers had not been recorded.
c. No journal entry had been made on the retailer’s books for several items returned to its suppliers.
d. An item purchased FOB shipping point had not arrived at the date of the inventory count and had not been reflected in the perpetual records.